5 to 15pc cut in petroleum prices

ISLAMABAD - The government Saturday cut down the prices of petroleum products including petrol, diesel and kerosene oil by 5 to 15 per cent for this fortnight (November 16-30) with the sharp drop in prices of crude oil in the international market, according to a notification issued on Saturday. The spokesman for Oil and Gas Regulatory Authority (OGRA) said that keeping the current declining trend in the international crude oil prices, the petroleum products' prices were reduced with petrol by Rs 10, HOBC by Rs 15, diesel Rs 7 and kerosene oil by Rs 5 per litre respectively for the consecutive second fortnight.   According to a notification issued by OGRA, new ex-depot price of motor spirit (petrol) is fixed at Rs 66.66 against previous Rs 76.66 per litre, HOBC Rs 81.08 against Rs 96.08, kerosene oil Rs 56.87 against Rs 61.87 per litre and diesel Rs 53 against ex-price of Rs 60 per litre for this fortnight. These new prices are implemented with immediate effect from midnight between Saturday and Sunday. This reduction is the third in the recent months for petrol only but the second cut across the board. "This cut will have some impact on the lives of the common people but the poorest of the poor would have been relieved if there was a major reduction in the prices of diesel and kerosene oil," comment analysts. They said the diesel was the major fuel consumed by heavy vehicles transporting goods across the country. The passengers carrying vehicles were also using mainly diesel and the government desired to pass on the benefit to the poor people, then it was the right way to reduce the prices of diesel at par with petrol, people involved in transportation of goods opined. The extreme poor segment of the society was consuming the kerosene oil but the ratio of slashing its price by Rs 5 per litre was also considered by the analysts as not enough.    "The POL prices downward adjustment after the subsidy on oil products was completely eliminated a few months back. The government is considering to fully pass on the impacts of the prices of oil fluctuations in the international market to the end consumers," an official in the Petroleum Ministry said. According to a report, the consumption of petrol stands just at 155,000 metric tonnes (1 billion litres) per month, while the country consumes 700,000 metric tonnes (nine billion litres) of diesel in a month. Oil prices steadied on Thursday after falling close to 50 dollars a barrel in London trade as the International Energy Agency warns of sliding energy demand around the globe. With prices tumbling to the lowest levels in almost two years and down almost two-thirds in value compared to record highs of above 147 dollars a barrel in July.

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